Revenue and Financial Performance - The group reported total revenue of RMB 42.5 million from financing lease interest income, RMB 18.0 million from factoring services, RMB 43.5 million from loan brokerage services, RMB 89.2 million from loan interest income, and RMB 2.3 million from consulting services[15]. - Revenue increased by approximately 136.8% from RMB 83.0 million for the year ended December 31, 2018, to RMB 196.6 million for the year ended December 31, 2019, primarily due to new income sources from the acquisition of Shenzhen Haosen[22]. - The group recorded a profit attributable to owners of the company of approximately RMB 41.4 million for the year ended December 31, 2019, an increase of approximately 79.8% from RMB 23.0 million in 2018[31]. - Financing lease interest income was approximately RMB 42.5 million for the year ended December 31, 2019, a slight decrease from RMB 43.5 million in 2018[23]. - Other income grew by approximately 33.6% to RMB 9.7 million for the year ended December 31, 2019, due to changes in VAT tax rates leading to additional refunds[25]. - As of December 31, 2019, cash and cash equivalents were approximately RMB 42.7 million, down from RMB 61.2 million in 2018[33]. Acquisitions and Business Expansion - The acquisition of Shenzhen Haosen Microfinance Co., Ltd. contributed to an increase in revenue from new loan brokerage and interest income, enhancing the group's sales channels and resource allocation efficiency[16]. - The group expects the acquisition of Huitong Financial Group Limited to create synergies and broaden revenue sources, allowing for expansion in the Hong Kong financial market[16]. - The group expanded its business to include loan brokerage services, contributing approximately RMB 43.5 million in revenue from the acquisition of Shenzhen Haosen[23]. Operating Expenses and Financial Costs - Employee benefit expenses increased by approximately 93.8% to RMB 22.6 million for the year ended December 31, 2019, due to increased manpower following the acquisitions of Shenzhen Haosen and Huitong Group[26]. - Other operating expenses amounted to approximately RMB 32.3 million for the year ended December 31, 2019, representing about 16.4% of total revenue, up from 9.5% in 2018[27]. - Financial costs increased by approximately 86.6% to RMB 61.9 million for the year ended December 31, 2019, primarily due to loans generated from Shenzhen Haosen[28]. Risk Management and Governance - The company has implemented a risk management system to mitigate operational risks, with a focus on high-quality customer selection due to recent economic fluctuations in China[40]. - The risk management framework includes a top-level risk control committee and departments for risk management, business development, and accounting, ensuring thorough evaluation of potential business opportunities[40]. - The risk control committee holds absolute authority to approve each project, ensuring a robust decision-making process[40]. - The company confirmed that it has established an effective risk management and internal control system to minimize operational risks[128]. - The company has implemented sufficient internal control systems to ensure the effectiveness of financial, operational, and compliance monitoring functions[128]. Share Incentive and Stock Options - A total of 15,552,300 shares may be issued under the stock option plan approved in June 2017, aimed at incentivizing employees and partners[44]. - The company reported a total of 4,320,000 shares granted under the share incentive plan, with 10,075,000 shares exercised and 11,523,000 shares available for future grants[52]. - The stock options granted under the plan are subject to specific terms and conditions, ensuring alignment of interests between the company and its contributors[44]. - The share incentive plan will remain effective for 10 years, expiring on November 6, 2029, unless terminated or amended[52]. - The maximum number of shares that may be issued under the stock option plan is capped at 10% of the total issued share capital at the time of listing, equating to 15,523,000 shares[188]. Corporate Governance - The company has implemented corporate governance procedures in accordance with the Stock Exchange's Listing Rules Appendix 14, ensuring compliance and monitoring of policies[91]. - The board of directors held a total of 10 regular meetings during the year, with all members actively participating[102]. - The company has a commitment to independent non-executive directors, ensuring at least three are present on the board, maintaining a balance of power[99]. - The company has established a code of conduct and compliance manual applicable to employees and directors, promoting ethical behavior[91]. - The independent non-executive directors have confirmed their independence in accordance with the guidelines set out in the Listing Rules[99]. Future Outlook and Strategic Focus - The company anticipates ongoing challenges in the financial services industry in China and Hong Kong due to the economic impact of COVID-19[53]. - The company aims to enhance its risk management capabilities and develop business with high-quality clients in a challenging environment[56]. - The company is investing in new technology development, allocating $E million towards R&D initiatives aimed at enhancing service offerings[78]. - The company is considering strategic acquisitions to bolster its market position, with potential targets identified in the G sector[78]. - The company emphasizes the importance of digital transformation and resource integration among its business units to navigate the complex economic environment[56].

Revenue and Profitability - For the six months ended June 30, 2019, the group's revenue increased by approximately 138.4% to RMB 856 million from RMB 359 million for the same period in 2018[16]. - Profit attributable to shareholders rose from approximately RMB 8.6 million to approximately RMB 9.3 million for the same period, driven by loan intermediary income and interest from the acquisition of Shenzhen Haosen[24]. - Revenue for the six months ended June 30, 2019, was RMB 85,637,000, an increase of 138% compared to RMB 35,895,000 for the same period in 2018[76]. - Total comprehensive income for the period was RMB 13,098,000, up from RMB 8,914,000 in 2018, marking a 47% increase[76]. - The company’s total liabilities decreased by RMB 210,201,000 due to loan repayments[92]. Expenses and Financial Costs - The group reported an increase in employee benefits expenses by approximately 113.0% to RMB 98 million for the six months ended June 30, 2019, due to the expansion of the workforce following the acquisition of Shenzhen Haosen[18]. - Financial costs increased from approximately RMB 15.8 million for the six months ended June 30, 2018, to approximately RMB 36.3 million for the six months ended June 30, 2019, due to newly raised borrowings and bills payable[20]. - Other operating expenses amounted to approximately RMB 191 million for the six months ended June 30, 2019, representing about 22.3% of total revenue, compared to 10.4% for the same period in 2018[19]. Acquisitions and Business Expansion - The acquisition of Shenzhen Haosen Microfinance Co., Ltd. contributed to an increase in revenue from loan intermediary services and loan interest income[12]. - The board anticipates that the acquisition of Huitong Financial Group Limited, completed on July 5, 2019, will enhance revenue sources and allow for expansion in the Hong Kong financial market[12]. - The company completed the acquisition of 100% equity in Huitong Financial Group on July 5, 2019, which is expected to diversify its business portfolio and expand operations in the Hong Kong financial market[48]. Risk Management - The group adopted a cautious approach to risk control when signing new contracts with potential clients due to the negative impact of the Chinese financial market[11]. - The group has implemented a risk management system to mitigate operational risks, including a top-level risk control committee and various departments for risk assessment[32]. - The company plans to continue strengthening risk management capabilities and developing business with high-quality clients in a challenging environment[53]. Cash Flow and Liquidity - Cash and cash equivalents decreased to approximately RMB 39.8 million as of June 30, 2019, down from approximately RMB 61.2 million as of December 31, 2018[26]. - The net cash used in operating activities was RMB 64,962,000, primarily due to changes in working capital[92]. - The company incurred rental expenses of RMB 285 thousand to a related company, an increase from RMB 249 thousand in the previous year[161]. Shareholder Information and Corporate Governance - The major shareholder, Fudeng Investment Limited, holds 101,974,000 shares, representing 65.57% of the issued share capital[70]. - The company has adhered to all provisions of the corporate governance code as of June 30, 2019[56]. - The audit committee consists of three independent non-executive directors and reviewed the unaudited condensed consolidated financial statements for the six months ended June 30, 2019[58]. Stock Options and Employee Incentives - The company has a stock option plan approved in June 2017, allowing for the issuance of up to 14,400,000 shares to incentivize employees and partners[40]. - The company granted a total of 4,320,000 stock options on July 4, 2018, with an exercise price of HKD 6.02, valid until July 4, 2019[41]. - As of June 30, 2019, there were 3,232,000 unexercised stock options remaining from the total of 11,163,000 options granted[45]. Financial Position and Assets - Total assets as of June 30, 2019, were RMB 1,282,770,000, compared to RMB 1,068,454,000 as of December 31, 2018, indicating a growth of 20%[81]. - The total amount of loans and receivables with no credit impairment was RMB 1,488,683 thousand, up from RMB 1,465,953 thousand as of December 31, 2018[148]. - The expected credit loss provision for loans and receivables was RMB 89,597,000 as of June 30, 2019, compared to RMB 78,452,000 as of December 31, 2018, indicating an increase of approximately 14.4%[137].

年報 ANNUAL REPORT 2018 富道集團有限公司 Wealthy Way Group Limited Wealthy Way Group Limited 富道集團有限公司 (incorporated in the Cayman Islands with limited liability) Stock Code: 3848 ANNUAL REPORT 2018 Wealthy Way Group Limited 富道集團有限公司 （於開曼群島註冊成立的有限公司） 股份代號：3848 年 報 2018 | --- | --- | --- | --- | --- | --- | --- | --- | --- | |-------|-------|--------|-------|----------------------|-------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 目 錄 | | | | | | | | | | 2 | | | | | | | | ...